Analysis of Operations, Logistics, and Supply Chain: Jaguar Land Rover

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This report provides a comprehensive analysis of Jaguar Land Rover's operations, logistics, and supply chain management. It begins with an introduction to the company and its brand, highlighting its history and evolution, including its merger with Land Rover and subsequent acquisition by Tata Motors. The main body delves into the company's operations management, new product development processes, and supply chain strategies. The report examines Jaguar Land Rover's focus on intelligent vehicles, emission reduction, and its collaboration with VEC for new designs. It details the stages of new product development and the importance of effective supply chain management. The report also discusses the company's relationship with key suppliers like Grupo Antolin and offers recommendations for further improvement, such as automated purchasing systems and resource planning. The conclusion emphasizes the significance of operations management, new product development, and logistics in achieving organizational growth and success.
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Organisations includes various methodologies in their business to improve its
performances. There are two main factors on which an organisations focus on. They are: logistics
and supply chain management. This basically is the flow of the goods. This flow is between the
origin point and consumption point which helps in fulfilling the requirements of the company,
maximize the customer value and achieve sustainable competition. This report contains
operations, logistics and supply chain management of “ Jaguar Land Rover” which is a luxurious
brand for vehicles. It also contains new product development process and logistics mix of the
company (Fontes and Freires., 2018).
MAIN BODY
Jaguar is a British luxurious brand of vehicles of Jaguar Land Rover, who's head office is
situated in Whitley, Coventry, England. It was founded in 1922 by two motorcyclist named:
William Lyons and William Walmsley, where they were initially producing motorcycle sidecars
under the company named as Swallow Sidecar Company. Later the company entered into the
industry where they were manufacturing cars. The name of the company was changed to jaguar
in 1945. The company was merged in the year 1966 with British Motor Corporation which
resulted in the enlargement of the company. Jaguar easily gained success because of its advanced
technological cars and great marketing skills.
In 1990, ford acquired jaguar and this acquisition lead to the growth of it at international
level as it got expertise from the ford company. Ford motors again in 2000 acquired the land
rover company to expand its business. In 2008, the ford company sold both the companies
acquired i.e. jaguar and land rover to Tata motors which is an Indian car manufacturing
company. Later Tata motors decided to combine both the companies. The jaguar car company
was solely responsible for the production of jaguar before it was merged with land rover on 1st
January 2013. After the merger it was named as “Jaguar Land Rover”.
Jaguar is a famous brand which is well known for its luxurious cars and sporty designs.
While Land Rover is famous for the manufacturing of SUV's. These are both the successful
companies and the merger helped the companies to grow more by combining the operational
strategies and expertise in technology. When both the companies were part of ford company,
they were jointly being engineered at Coventry, England. This not only helped the company to
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save the cost on its manufacturing but also helped the cars to be manufactured or engineered in
better professionals with lots of skills.
The mergers of both the companies with Tata motors have resulted in huge growth of the
Tata motors company (John., 2018). Tata motors have expertise in selling cars in India which
further helped jaguar to keep the position of the brand maintained in the Indian market as the
market in India is one of the largest market in the whole world.
Jaguar has a lot of success even in sports racing cars and electric boats. Recently in 2018,
jaguar vector racing broke the world record of maritime electric. Jaguar offers wide range of car
models which are all luxurious. Although jaguar have many competitors but few of the
manufacturers who are in the same luxurious manufacturing of the cars are: Audi, Mercedes,
BMW, etc.
Currently jaguar is focusing on the new goal to manufacture an intelligent vehicle which
will have the potential to run by itself without any drivers. They are also focusing on reducing
the cars emission of CO2 by 25% for the protection of environment.
Operations management is the managing of the activities of business in an organisation to
reach the highest efficiency level possible. It is generally focused onto converting raw materials
into finished goods and services efficiently. The operations are to be managed to generate higher
amount of profit by using the available resources efficiently. Almost all the aspects of an
organisations are depended on the operations management. Managers plan the strategies which
they direct and then encourage the manufacturers in producing goods and providing services
efficiently to satisfy the customers needs (Kaur and Singh., 2018). This system mainly focuses
on the production units which is very important for the jaguar in order to increase its growth and
maximisation of its profit.
New Product do not only mean the introduction of an original product into the market. It
also includes improvement and modification of already existing products which are developed
by companies by its own efforts and R&D. A new product can also be the one already introduced
by some other company but may be new to the company who is launching it. Product
development is a process in which the possible factors are taken into consideration like the
possibilities, feasibility and profitability of the product to be produced.
An organisation if is only relying on one product to grow and maximize profit, it will
soon start to lose everything. Therefore it is important for an organisation to always come up
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with new and innovative ideas to sustain competition. With the market evolution, there exist new
demands and needs of the consumers (Lam and Ip., 2019). This is also one of the main reasons
behind introducing or redesigning of the product as the needs and demands of the customers are
always changing and they need various options while making selections. There is a lot of
competition in the market and all the organisations works in direction to maintain the quality and
sustain the competition by competing with other companies. If an organisation is introducing
multiple developed products it gets easier for him to sustain the competition and lead the market.
Jaguar being always advanced in its technologies is continuously focusing on improving
the products by introducing new developed products. Jaguar Land Rover is the company who is
famous for continuously focusing on the innovation of new technologies by which they can
enhance its products. They always come up with latest designs and highest technologies that can
be used in the new product with amazing designs to attract customers and fulfil their demands.
Jaguar has collaborated with VEC i.e. virtual engineering centre which helps jaguar in producing
new designs with the help of supercomputing facilities. VEC helps in checking the company's
new product performance with minimum cost and more efficiency. This proved that jaguar is not
only dependent on the internal units but are also exploring its options by collaborating itself with
VEC to get access of latest and high technologies. This helps company to reduced its
manufacturing costs and using of the resources efficiently.
New product development is not considered as a luxury for any organisation. It is
important to follow the process because it is considered as a necessity. There are several stages
which are to be followed while developing a new product. First stage, generation of ideas and
concepts for the development of new ideas . Jaguar continuously works in the direction of
generating new idea. Second stage, planning of the design. Jaguar under this stage plan on the
designs of the product which they wish to launch. Third stage, designing an development. Jaguar
under this stage complete the designing of the product and develop the product planned as per
the design. Fourth stage, testing and verification. Jaguar under this stage test the final product
developed to evaluate the design and its effectiveness. It later is verified according to the plan of
design made (Muogboh and Ojadi., 2018). Fifth stage, validation and collateral production.
Under this stage jaguar seeks validation from its customers regarding the fulfilment of all the
needs and requirements. After validation if it is approved it is prepared for its launch. Sixth
stage, launch. Jaguar under this stage launch the new product developed. All the plans relating to
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the marketing are also finalised under this. Seventh stage, improvement. Under this stage jaguar
adds the product to the company's portfolio and work in direction to further make improvements
and upgrades in the product.
Supply chain management or SCM is another important factor on which an organisation
rely on to have long term success. This is a process which looks after the management process of
evolution of goods and services (Shariff and Ahmad., 2019). This deals with evolution from raw
materials to finished products ready to be sold to the customers. The SCM deals with the
evolution of product from start to the delivery of the product to the consumers. It is very
important for an organisation to effective business relationship with the supply chain, which
includes: suppliers, transporters, retailer and distributor. When there is efficient communication
and great flow of goods across the supply chain of any unit, it creates a positive impact on the
cost terms and the quality would also differ in each supply chain entity. It is thus very important
to create healthy relationship with clear terms and conditions with the supply chain (Zijm and
Klumpp., 2016). A company can have high productive supply chain only if the relationship is
balanced and there exist trust and tolerance between them. There shall exist two way
communication. They should also mutually solve the problems and help remove the deficiencies
of others, if any. Every partner should try to solve and help in the problems of the suppliers
instead of changing the supplier or develop relationships with other suppliers.
Jaguar truly understands the value for the maintenance of the relationship with its supply
chain as it believes it has many competitors above it. SCM is very important for the jaguar as it
will help the company to: firstly, improve the services of its customers by making deliveries on
time and Providing a timely support system to the customers (Wagner and Thakur-Weigold.,
2018). Secondly, it reduces the operating cost of the company by decreasing the cost of
purchasing and production of the product and also by decreasing the total cost of supply chain.
Thirdly, it will help jaguar to improve the financial position of its company by decreasing fixed
assets of the company, increasing its cash flow and inserting profit leverages.
Jaguar has a key supplier who provides interiors to their cars named: Grupo Antolin. Due
to the increase in demand of cars and its customization, Antolin was facing issues with the
delivery of the cars on time. Earlier they used to take approx. 6 hours to complete the work but
with the increase in demand it was getting difficult for them. Instead of facing on finding a new
supplier, the company decided to send few of its managers to the suppliers company for
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identifying the issues. After the analysis they came with a solution to build a new assembly line
which will help Antolin to fulfil the requirements of the customers on time. The Jaguar Land
Rover did not just helped the supplier company but also they made a strong relationship with
them based on trust.
Jaguar have effective operations, logistics and supply chain manager and doing really
good in automotive industry. But despite of all these, there still are few recommendations to help
the company further improve its growth and efficiency. Firstly, jaguar should plan its inventories
by using automatic purchase system to improve the efficiency. Secondly, apply the resource
planning system to manage the requirements of the material along with its cost and increase in
the transparency. Thirdly, jaguar should increase its awareness in the organisation and also in the
supply chain to impact the cost of the product.
CONCLUSION
It is concluded from this report that it is very important for an organisation to have good
operations management to improve the efficiency and growth of the company. For any company
to grow it should systematically plan and implement. There are several factors which are
considered as very important in the growth of an organisation. The mains are the new product
development and its process on how the product is developed, logistics mix, etc. these are all
frameworks which helps company reach heights and success.
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REFERENCES
Books and Journals
Fontes, C.H.D.O. and Freires, F.G.M., 2018. Sustainable and renewable energy supply chain: A
system dynamics overview. Renewable and Sustainable Energy Reviews, 82, pp.247-
259.
John, L., 2018. Review of empirical studies in humanitarian supply chain management:
methodological considerations, recent trends and future directions. In The Palgrave
Handbook of Humanitarian Logistics and Supply Chain Management (pp. 637-673).
Palgrave Macmillan, London.
Kaur, H. and Singh, S.P., 2018. Heuristic modeling for sustainable procurement and logistics in
a supply chain using big data. Computers & Operations Research, 98, pp.301-321.
Lam, C.Y. and Ip, W.H., 2019. An integrated logistics routing and scheduling network model
with RFID-GPS data for supply chain management. Wireless Personal
Communications, 105(3), pp.803-817.
Muogboh, O.S. and Ojadi, F., 2018. Indigenous Logistics and Supply Chain Management
Practice in Africa', Indigenous Management Practices in Africa (Advanced Series in
Management, Volume 20).
Shariff, S. and Ahmad, N., 2019. Halal Logistics Operations in MS2400 Standards: A Literary
Review. In Contemporary Management and Science Issues in the Halal Industry (pp.
77-87). Springer, Singapore.]
Wagner, S.M. and Thakur-Weigold, B., 2018. Supporting collaboration in humanitarian supply
chains–insights from a design science project. Production Planning & Control, 29(14),
pp.1130-1144.
Zijm, H. and Klumpp, M., 2016. Logistics and supply chain management: developments and
trends. In Logistics and supply chain innovation (pp. 1-20). Springer, Cham.
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